BW Energy and Maurel & Prom have jointly agreed to acquire a 20% share in two blocks operated by Chevron offshore Angola.
The seller is Azule Energy, the joint venture in southwest Africa between bp and Eni.
Following completion of the transaction, which is anticipated next year, both BW Energy and Maurel & Prom would hold 10% interests in:
- Block 14 and its nine producing deepwater fields; and
- Block 14K, which contains a tieback to Block 14.
This woud also mark BW Energy's entry into E&P offshore Angola. The company operates the Kudu license to the south offshore Namibia, where it recently drilled the Kharas appraisal well.
“Firstly, we see clear upsides beyond the current production in Block 14. And, more importantly, we build a position for potential future operated development opportunities in the country. Angola is a mature hydrocarbon basin with an active M&A market and strong political support for the energy sector. We see attractive opportunities for BW Energy to apply our strategy of developing proven reserves and stranded assets through the reuse of existing energy infrastructure to unlock significant value over time.”
—Carl Arnet, CEO, BW Energy
The license for Block 14, where production started in 1999, presently runs through 2038. Current overall production is about 40,000 bbl/d. BW Energy estimates its net share of reserves, assuming ratification of the deal by Angola’s authorities, at 9.3 MMbbl.
However, there are other identified opportunities to increase recoverable volumes. Abandonment and decommissioning costs are covered by existing conditions.
Azule Energy valued the transaction with the two companies at up to $310 million, including deferred contingent payments of up to $115 million.
Azule Energy CEO Joseph Murphy added that the sale was in line with the company’s strategy of focusing on its core assets in Angola.
